Could your Facebook Friends actually affect your CREDIT rating? -
Traditionally, your credit score is determined by things like steady employment, paying bills on time, outstanding loans and number of inquiries into your credit history. But one lending firm is adding Facebook friends to the list.
How can your Facebook friends affect you’re ability to get a loan? Lenddo, a microlending firm based in Hong Kong, believes that the likelihood of your friends to pay back loans or not could be indicative of your habits as well.
The New York Observer’s Beta Beat has more on what the company says is “the world’s first credit scoring service that uses your online social network to assess credit”:
The company’s algorithm is proprietary and secret, said CEO Jeff Stewart, but the primary metric is what Lenddo knows about the people you’re friends with. “We think that in the age of the internet you should be able to establish your reputation and your identity through your social graph, through your on- and offline community, and use that to get access to financial products and information,” he said.
If Lenddo sees one of your best Facebook buddies took out a loan and paid it back, there’s a good chance you will too. “Our backgrounds are in machine learning and pattern recognition,” Mr. Stewart said. “It’s some serious math.
Beta Beat tested out getting a loan and was asked for its Facebook account, as well as Gmail, Twitter, Yahoo and Windows Live. It was then given a credit score. To apply for an actual loan, it would need to have at least three friends with connections to Lenddo and a decent credit history themselves.
Read more -
http://www.theblaze.com/stories/could-your-facebook-friends-actually-affect-your-credit/
Traditionally, your credit score is determined by things like steady employment, paying bills on time, outstanding loans and number of inquiries into your credit history. But one lending firm is adding Facebook friends to the list.
How can your Facebook friends affect you’re ability to get a loan? Lenddo, a microlending firm based in Hong Kong, believes that the likelihood of your friends to pay back loans or not could be indicative of your habits as well.
The New York Observer’s Beta Beat has more on what the company says is “the world’s first credit scoring service that uses your online social network to assess credit”:
The company’s algorithm is proprietary and secret, said CEO Jeff Stewart, but the primary metric is what Lenddo knows about the people you’re friends with. “We think that in the age of the internet you should be able to establish your reputation and your identity through your social graph, through your on- and offline community, and use that to get access to financial products and information,” he said.
If Lenddo sees one of your best Facebook buddies took out a loan and paid it back, there’s a good chance you will too. “Our backgrounds are in machine learning and pattern recognition,” Mr. Stewart said. “It’s some serious math.
Beta Beat tested out getting a loan and was asked for its Facebook account, as well as Gmail, Twitter, Yahoo and Windows Live. It was then given a credit score. To apply for an actual loan, it would need to have at least three friends with connections to Lenddo and a decent credit history themselves.
Read more -
http://www.theblaze.com/stories/could-your-facebook-friends-actually-affect-your-credit/
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